The Power Law

Venture Capital and the Making of the New Future

By: Sebastian Mallaby

Narrated by: Will Damron

Shortlisted for the Financial Times Business Book of the Year

Named a Best Book of 2022 by The Economist

“A gripping fly-on-the-wall story of the rise of this unique and important industry based on extensive interviews with some of the most successful venture capitalists.” - Daniel Rasmussen, Wall Street Journal

“A must-read for anyone seeking to understand modern-day Silicon Valley and even our economy writ large.” -Bethany McLean, The Washington Post

"A rare and unsettling look inside a subculture of unparalleled influence.” —Jane Mayer

"A classic...A book of exceptional reporting, analysis and storytelling.” —Charles Duhigg

From the New York Times bestselling author of More Money Than God comes the astonishingly frank and intimate story of Silicon Valley’s dominant venture-capital firms—and how their strategies and fates have shaped the path of innovation and the global economy

Innovations rarely come from “experts.” Elon Musk was not an “electric car person” before he started Tesla. When it comes to improbable innovations, a legendary tech VC told Sebastian Mallaby, the future cannot be predicted, it can only be discovered. It is the nature of the venture-capital game that most attempts at discovery fail, but a very few succeed at such a scale that they more than make up for everything else. That extreme ratio of success and failure is the power law that drives the VC business, all of Silicon Valley, the wider tech sector, and, by extension, the world.

In The Power Law, Sebastian Mallaby has parlayed unprecedented access to the most celebrated venture capitalists of all time—the key figures at Sequoia, Kleiner Perkins, Accel, Benchmark, and Andreessen Horowitz, as well as Chinese partnerships such as Qiming and Capital Today—into a riveting blend of storytelling and analysis that unfurls the history of tech incubation, in the Valley and ultimately worldwide. We learn the unvarnished truth, often for the first time, about some of the most iconic triumphs and infamous disasters in Valley history, from the comedy of errors at the birth of Apple to the avalanche of venture money that fostered hubris at WeWork and Uber.

VCs’ relentless search for grand slams brews an obsession with the ideal of the lone entrepreneur-genius, and companies seen as potential “unicorns” are given intoxicating amounts of power, with sometimes disastrous results. On a more systemic level, the need to make outsized bets on unproven talent reinforces bias, with women and minorities still represented at woefully low levels. This does not just have social justice implications: as Mallaby relates, China’s homegrown VC sector, having learned at the Valley’s feet, is exploding and now has more women VC luminaries than America has ever had. Still, Silicon Valley VC remains the top incubator of business innovation anywhere—it is not where ideas come from so much as where they go to become the products and companies that create the future. By taking us so deeply into the VCs’ game, The Power Law helps us think about our own future through their eyes.

©2022 Sebastian Mallaby (P)2022 Penguin Audio

Critic reviews

Shortlisted for the Financial Times Business Book of the Year Award

“Meticulously researched account . . . The book offers a satisfying look at how the sausage is made at some of the most powerful investment firms on the planet.” —New York Times

“Thoroughly magnificent. . . . Seriously great, and wildly important.” —Forbes

“Sebastian Mallaby is the master of unspooling human drama from financial systems. Here, the venture capitalists are the protagonists. Whether it’s financiers scrambling to court a pajama-wearing young Mark Zuckerberg or venture capitalist Bill Gurley’s efforts to oust Uber founder Travis Kalanick from the company, the stories are almost Shakespearean in their depictions of ambition, jealousy and ego.” —NPR, “Books We Love 2022”

stupendous <3

an amazing and gripping account of history :) I would highly recommend this for a quick listen or carefully read.

Amazing history of the VC industry!

Great insights and stories! Author has done a masterful job documenting this industry and its impact on the world.

A great read/listen to understand VC firms and their history

Phenomenal book that provides a deep, objective and yet engaging view of the history and workings of venture capital firms

Must read for anyone interested in Venture Capital

An excellent history as well as analysis of venture investments since the beginnings of the industry. The evaluation of the impact, set backs, and future opportunities are well stated and worth understanding.

Brilliantly put together!

Can’t expressed how eye opening this books has been for me. Well designed and drafted with a captivating storytelling throughout.

Guy Fieri for Oligarchs

Good to know that everyone is a visionary, far seeing person. I was not aware. Great to know that even the jerks aren't really jerks, it just wasn't something they could avoid.
This is the second book I have read by Mallaby. It's useful to inform yourself about these people, and he does that.
I used to work with a guy who made promotional films for local governments to try to attract big business to locate in the area. We always showed the nice parts, not the toxic waste dumps.
So you aren't going to get more than a promotional view of these people, but it's a start.

An Excellent Modern History Book

I’ve worked in the VC industry for years and know the big names, but not the back stories. This was amazing storytelling and vital information.

I wish all the politicians who keep demonizing the industry would read this.

Excellent content, excellent voice

Very intriguing story and thoughtful reflection of the startup journey of many brand names, a must read for entrepreneurs.

One of the best!

This book is of the rare type that causes me to be depressed when finished, knowing it's going take a while unil I find something else that good.

Bravo Mallaby! amazing work. And also bravo Damron, your narration is perfect.

For anyone considering: don't hesitate. It's so good and interesting - regardless if you're in tech. And if you're a startup founder - it's an absolute must.

Great backdrop for how and why VC got started

Succinct, easy to follow, and informative history of venture capital. Highly recommend it to anyone